Debate House Prices
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Repo's up and some startling numbers
Comments
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I think that is against average wage. Not of average income when buying.
Here it is in 2007, I think the data is done by the CML but this was the first link I found.
http://www.moneywell.co.uk/blog/general-financial/the-average-first-time-buyer-income-multiple-increases-2007
Indeed.
also there is a large difference when discussing: -- House Price v Wages
- Mortgage v Wages
:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
Graham_Devon wrote: »
CML state average income for those buying is £38,300. (EG could be two people)
However, CML figures are only based on the size of the loan. Therefore, any deposit is not taken into account, making the income of the FTB even higher.
What are you on about? it is the average multiple of the mortgage.
When people say a multiple of 3.5X wage that is lending 3.5X wage?
I fail to see where you are getting on that point the deposit makes no difference or the income higher?
Average FTB income when purchasing is as they state, perhaps it show people don't buy the average house as their first house?0 -
What are you on about? it is the average multiple of the mortgage.
When people say a multiple of 3.5X wage that is lending 3.5X wage?
I fail to see where you are getting on that point the deposit makes no difference or the income higher?
Alright. You stick with the denial. Cus I aint arguing it out.
Figures speak for themselves. If the average never passed 3.3x wages, which apparently, it didnt...how on EARTH were people buying up houses in 2007?
Which mortgages are included, is key. Unfortunately, we don't have that information.
It's a bit like the A&E waiting time statistics. Facts are, people waited under 4 hours. But it's how the facts were made up which provided the outcome.0 -
Hamish said that the average FTB loan did not go past 3.5X income even at peak
Who's in denial here, remember the point you are arguing.0 -
What are you on about? it is the average multiple of the mortgage.
When people say a multiple of 3.5X wage that is lending 3.5X wage?
I fail to see where you are getting on that point the deposit makes no difference or the income higher?
Average FTB income when purchasing is as they state, perhaps it show people don't buy the average house as their first house?
Lets have a hypothetical example.
FTBer has a £50,000 deposit (made up from savings / BOMAD / inheritance / whatever).
They're joint income is only £33,000. (Many single incomes are on that)
Can they afford a £165,000 property?
What is their LTV should they use their deposit?
What is their multiplier of their income to mortgage?:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
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Graham_Devon wrote: »Then how did so many FTB's in 2007 buy houses at 2007 prices?
Can you answer that question.....or not?
They did not buy average price houses and they were not all buying on one wage based on the average uk wage?
As life is not based on these averages?
Not every FTB buys a £200K house, the average FTB house seems to be less than £150K @ peak.
Perhaps now you can state why the figures are wrong????
Not that you ever ignore questions Graham.0 -
This is really grim news. The future for the economy is looking bleak. I just wish things could start picking up again.0
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Graham_Devon wrote: »Then how did so many FTB's in 2007 buy houses at 2007 prices?
Can you answer that question.....or not?
You may find this article interesting from 2007
http://www.cml.org.uk/cml/media/press/1065Affordability pressures continued to squeeze first-time buyers in November as income multiples reached their highest ever level - 3.29 times the average first-time buyer household income - according to new data from the Council of Mortgage Lenders. This was up from 3.27 times in October, and 3.08 times in the same month last year
The new figures come on the back of last week's decision by the Bank of England to raise interest rates by 0.25% to 5.25% - the highest level since May 2001. In November, the average first-time buyer mortgage was £113,877 and the latest increase in interest rates will add an extra £17 to average monthly mortgage payments.
Today's data also reveals that the proportion of income used to pay mortgage interest payments hit record levels in November at 17.8% - up from 17.4% in October and 15.8% in November 2005
And the number of first-time buyers that paid stamp duty increased to 57% in November, up from 56% in October and 48% in the same month last year.
But, despite affordability constraints growing, the number of first-time buyers managing to get on the property ladder is actually increasing. In November the number of loans to first-time buyers grew by 5% to 37,000 loans. This is up from 35,300 loans in October.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
They did not buy average price houses and they were not all buying on one wage based on the average uk wage?
As life is not based on these averages?
Not every FTB buys a £200K house, the average FTB house seems to be less than £150K @ peak.
See above postIn November [2006], the average first-time buyer mortgage was £113,877:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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